THE future of the Valleywood film studios near Pencoed has been safeguarded.

Dragon International, the company building the Valleywood studios, has been given legal protection against any attempts to wind it up.

The firm is heading the £300m project on the old Llanilid Opencast site between Pencoed and Llanharan, and was granted a 28-day moratorium by the courts after one of its creditors sought to wind it up.

Dragon’s chief executive Stuart Villard insisted that the project was on track.

He said that the company had to demonstrate to the court that it had significant assets to cover all creditor liabilities.

He said that the project’s banker Barclay’s and the developer Cofton Wales were fully supportive of the company.

“We received a letter from a creditor threatening to wind up the business,” he said.

“I can only describe their actions as opportunistic. We took professional advice and successfully secured from the court a moratorium which protects all our creditors from anyone seeking to wind up the business.

“The project is well advanced and Barclays and Cofton are fully behind it.”

Dragon will now spend the moratorium period reaching informal agreement with creditors on the best way forward.

The first four film studios are close to completion and the scheme could eventually employ 1,700 people.

The chairman of Dragon International Studios is actor and film maker Sir Richard Attenborough.